Present Value of PhotoVoltaics (PV2) is an app that allows homeowners to determine a complete cost of ownership for residential rooftop solar PV systems.
Analysis Assumptions
Change 'Use Custom Discount Rates' 'Customize Discount and/or Inflation Rates'
Above this put a bold heading: "Do you want to modify the default discount and/or inflation rates?"
Change 'For example, if you are indifferent to receiving $0.90 now or $1.00 in 1 year, then your discount rate is 10% because you are willing to receive 10% less now than wait 1 year.' to 'For example, if you are indifferent to receiving $1.00 now or $1.10 in 1 year, then your discount rate is 10% because you require an additional 10% to wait 1 year for the money.'
Change the bold text
'A nominal discount rate is the discount rate including general inflation, and is likely to be easier for a user to determine. A common nominal discount rate value is either a homeowner's mortgage interest rate (currently 3 % to 6 % on 30-year) or the expected average return on investing in the stock market (historical average of 8 % to 12 %) or bond market (currently 3% on 30-year treasury). These are "nominal" because it is the rate earned or paid including general inflation of overall prices.
'Inflation rate is the long-run general rate of increase in overall prices in the economy. The Federal Reserve has a long-run general inflation target of 2 %. Historically, inflation has been below this target with the exception of 2021 and 2022 with much higher rates (7 % +). Expectations are that inflation will decrease in the future back towards, but slightly higher than the 2 % target.'
Add this text to the end of the real discount rate explanation: 'The default value is based on the that used for federal energy efficiency projects.'
Electrical Cost Information
For the newly added question: "Do you know your annual electricity consumption?" add an information icon:
'If you cannot provide your annual electricity consumption, the tool assumes this value equals the solar PV system's initial estimated annual generation. It's common for solar installers to size the system to offset consumption.'
Above 'Use Advanced Electricity Price Structure'
Add bold heading: "Do you want to use a simple (average) or advanced electricity price structure?"
Electricity Price Esc Rates information icon: After 'Change Annual escalation rates for electricity prices.' Add 'These escalation rates are in real term (exclude inflation).'
SREC Payments
update list of states in information icon with the following:
States where SRECs may have value (as of August 2022):
Connecticut
Delaware
District of Columbia
Illinois
Indiana
Kentucky
Maine
Maryland
Massachusetts
Michigan
New Hampshire
New Jersey
Ohio
Rhode Island
Pennsylvania
Vermont
Virginia
Results
round kWh and CO2e to whole numbers throughout results
Graphs
Delete the annual net savings figure. Its just the mirror image of the NPV
Make sure the annual figures are on the left and cumulative figures are on the right.
Net Electrical Consumption rename 'Annual Net Electricity Consumption'
Electricity Reduction rename 'Cumulative Electricity Reduction'
Currently if PPA is added, and the data is the same, its not possible to see the PPA line. Put the PPA line on top of the Purchase line and make the PPA line dashed so the solid Purchase line would be visible between the dashes.
Analysis Assumptions Change 'Use Custom Discount Rates' 'Customize Discount and/or Inflation Rates' Above this put a bold heading: "Do you want to modify the default discount and/or inflation rates?" Change 'For example, if you are indifferent to receiving $0.90 now or $1.00 in 1 year, then your discount rate is 10% because you are willing to receive 10% less now than wait 1 year.' to 'For example, if you are indifferent to receiving $1.00 now or $1.10 in 1 year, then your discount rate is 10% because you require an additional 10% to wait 1 year for the money.' Change the bold text 'A nominal discount rate is the discount rate including general inflation, and is likely to be easier for a user to determine. A common nominal discount rate value is either a homeowner's mortgage interest rate (currently 3 % to 6 % on 30-year) or the expected average return on investing in the stock market (historical average of 8 % to 12 %) or bond market (currently 3% on 30-year treasury). These are "nominal" because it is the rate earned or paid including general inflation of overall prices. 'Inflation rate is the long-run general rate of increase in overall prices in the economy. The Federal Reserve has a long-run general inflation target of 2 %. Historically, inflation has been below this target with the exception of 2021 and 2022 with much higher rates (7 % +). Expectations are that inflation will decrease in the future back towards, but slightly higher than the 2 % target.' Add this text to the end of the real discount rate explanation: 'The default value is based on the that used for federal energy efficiency projects.'
Electrical Cost Information For the newly added question: "Do you know your annual electricity consumption?" add an information icon: 'If you cannot provide your annual electricity consumption, the tool assumes this value equals the solar PV system's initial estimated annual generation. It's common for solar installers to size the system to offset consumption.'
Above 'Use Advanced Electricity Price Structure' Add bold heading: "Do you want to use a simple (average) or advanced electricity price structure?"
Electricity Price Esc Rates information icon: After 'Change Annual escalation rates for electricity prices.' Add 'These escalation rates are in real term (exclude inflation).'
SREC Payments update list of states in information icon with the following:
States where SRECs may have value (as of August 2022): Connecticut Delaware District of Columbia Illinois Indiana Kentucky Maine Maryland Massachusetts Michigan New Hampshire New Jersey Ohio Rhode Island Pennsylvania Vermont Virginia
Results round kWh and CO2e to whole numbers throughout results
Graphs Delete the annual net savings figure. Its just the mirror image of the NPV Make sure the annual figures are on the left and cumulative figures are on the right. Net Electrical Consumption rename 'Annual Net Electricity Consumption' Electricity Reduction rename 'Cumulative Electricity Reduction' Currently if PPA is added, and the data is the same, its not possible to see the PPA line. Put the PPA line on top of the Purchase line and make the PPA line dashed so the solid Purchase line would be visible between the dashes.